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Returns on Investment (finance)

Returns on investment, or ROI, is a measure of the profitability of an investment. It is calculated by dividing the net profit of the investment by the cost of the investment, and is expressed as a percentage. Continue Reading Below

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Encyclopedia Articles

Discover the definition of financial terms related to returns on investment (finance).

Ex-Post: Unveiling Practical Insights & Real-Life Scenarios Thumbnail

Ex-Post: Unveiling Practical Insights & Real-Life Scenarios

Silas Bamigbola

Financial Buyers: Strategies, Examples, and Prospects Thumbnail

Financial Buyers: Strategies, Examples, and Prospects

SuperMoney Team

Discount Notes: Understanding Short-Term Debt Obligations, Examples, and Considerations Thumbnail

Discount Notes: Understanding Short-Term Debt Obligations, Examples, and Considerations

Alessandra Nicole

Dividend Recapitalization: Definition, Mechanics, and Real-Life Cases Thumbnail

Dividend Recapitalization: Definition, Mechanics, and Real-Life Cases

SuperMoney Team

Vintage Year Explained: Importance, Impact, and Real-World Examples Thumbnail

Vintage Year Explained: Importance, Impact, and Real-World Examples

Silas Bamigbola

Payouts: Types, Real-World Examples, and Pros & Cons Thumbnail

Payouts: Types, Real-World Examples, and Pros & Cons

Alessandra Nicole

Earnings Yield: How It Works, Examples, and Benefits Thumbnail

Earnings Yield: How It Works, Examples, and Benefits

Silas Bamigbola

Growth of 10K: Definition, How It Works and Application Thumbnail

Growth of 10K: Definition, How It Works and Application

SuperMoney Team

Accumulated Dividends: Definition, Implications, and Examples Thumbnail

Accumulated Dividends: Definition, Implications, and Examples

Silas Bamigbola

What is the Steam-Oil Ratio? Example & How It's Used Thumbnail

What is the Steam-Oil Ratio? Example & How It's Used

Alessandra Nicole

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Learn About Returns on Investment (finance)

Thumbnail for Blog Article: Warren Buffett's Guide to Investing for Retirement

Warren Buffett's Guide to Investing for Retirement

Andrew Latham

Thumbnail for Blog Article: Best 10 Money-Making Home Improvements for 2026

Best 10 Money-Making Home Improvements for 2026

Jessica Walrack

Thumbnail for Blog Article: How To Get Rich? 7 Clever Investment Strategies

How To Get Rich? 7 Clever Investment Strategies

Gina Young

Thumbnail for Blog Article: Should I Pay Down My Mortgage or Invest?

Should I Pay Down My Mortgage or Invest?

TJ Porter

Thumbnail for Blog Article: What Is Sephora's Return Policy? (2026 Guide)

What Is Sephora's Return Policy? (2026 Guide)

Benjamin Locke

Thumbnail for Blog Article: What Is Best Buy's Return Policy? (2026 Guide)

What Is Best Buy's Return Policy? (2026 Guide)

SuperMoney Team

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About Returns on Investment (finance)

Returns on investment, or ROI, is a measure of the profitability of an investment. It is calculated by dividing the net profit of the investment by the cost of the investment, and is expressed as a percentage. ROI is a useful tool for evaluating the performance of an investment and comparing it to other potential investments. A high ROI indicates that an investment has been profitable, while a low ROI may suggest that the investment has not performed well. ROI can be used to assess a wide range of investments, including stocks, real estate, and businesses.